Retirement And Other Benefit Plans

12 Months Ended

Dec. 31, 2023

RETIREMENT AND OTHER BENEFIT PLANS

Defined Contribution Plan

The Company maintains a discretionary defined contribution 401(k) profit sharing plan covering all eligible employees. The Company contributed $12.1 million, $12.9 million, and $11.6 million to this plan during the years ended December 31, 2023, 2022, and 2021, respectively.

Deferred Compensation Plan

The Company has an Executive Non-Qualified Deferred Compensation Plan (the "Plan"). Pursuant to the Plan, certain management employees are eligible to defer all or a portion of their regular salary and incentive compensation. Participants deferred $2.6 million, $5.4 million, and $3.1 million during the years ended December 31, 2023, 2022, and 2021, respectively. The amounts deferred under this Plan are credited with earnings or losses based upon changes in values of the notional investments elected by the Plan participants. Each Plan participant is fully vested in their deferred compensation and earnings credited to his or her account as all contributions to the Plan are made by the participant. The Company is responsible for certain costs of Plan administration, which are not significant, and will not make any contributions to the Plan. Pursuant to the Plan, payments to the Plan participants are made from the general unrestricted assets of the Company, and the Company's obligations pursuant to the Plan are unfunded and unsecured. Participants withdrew $5.0 million, $2.4 million, and $2.0 million from the Plan during the years ended December 31, 2023, 2022, and 2021, respectively. At December 31, 2023 and 2022, deferred compensation of $40.5 million and $34.0 million, respectively, was recorded in other long-term liabilities, and deferred compensation of $2.5 million and $4.6 million, respectively, was recorded in accrued expenses and other current liabilities. The Company invests the majority of amounts deferred by the Plan participants in life insurance contracts, matching the investments elected by the Plan participants. Deferred compensation assets and liabilities are recorded at contract value. At December 31, 2023 and 2022, investments under the plan of $41.8 million and $37.6 million, respectively, were recorded in other long-term assets.

Dutch Pension Plans

The acquisition of Polyplastic in January 2020 included the assumption of two partially-funded defined benefit pension plans (the "Dutch pension plans") based in the Netherlands. The Dutch pension plans, which are qualified defined benefit pension plans, provided benefits based on years of service and average pay. The benefits earned by the employees were immediately vested. The Company funded the future obligations of the Dutch pension plans by purchasing non-participating annuities from a large multi-national insurance company that cover the vested pension benefit obligation of the participant, but do not cover future indexations or cost of living adjustments that were provided in plan benefits. Each year the Company made premium payments to the insurance company (1) to provide for the benefit obligation of the current year of service based on each employee's age, gender, and current salary, and (2) for indexations for both active and post-active participants. The Company determines the fair value of the plan assets with the assistance of an actuary using unobservable inputs (Level 3), which is determined as the present value of the accrued benefits guaranteed by the insurer.

During 2022, there was a curtailment of the Dutch pension plans for the Company's Dutch employees whose pension benefit was based on years of service and average pay. These employees have been moved into defined contribution plans. This event resulted in curtailment gain amortization of $2.0 million for the year ended December 31, 2022. However, the unconditional indexation for all participants remains applicable and the Company remains liable for funding. The Company is not obligated to provide future pension funding for service after December 31, 2022.

The following table summarizes the change in the projected benefit obligation and the fair value of plan assets for the Dutch pension plans for the years ended December 31:


(In thousands)	2023		2022
Projected Benefit Obligation
Projected benefit obligation at beginning of period	$	12,186	$	85,593
Interest cost	455		1,403
Net service cost	—		2,836
Curtailment	—		(2,030)
Employee contributions	—		666
Benefits paid	(64)		(975)
Actuarial loss (gain), net	27		(69,445)
Unrealized loss (gain) on foreign exchange	448		(5,862)
Projected benefit obligation at end of period	13,052		12,186

Fair Value of Plan Assets
Fair value of plan assets at beginning of period	$	7,386	$	52,296
Increase in plan asset value	292		910
Employer contributions	—		1,626
Employee contributions	—		666
Benefits and administrative expenses paid	(64)		(1,349)
Actuarial gain (loss), net	649		(43,180)
Unrealized gain (loss) on foreign exchange	286		(3,583)
Fair value of plan assets at end of period	8,549		7,386

Underfunded status of the plans at end of the period	$	4,503	$	4,800

Accumulated benefit obligation	$	13,052	$	12,186

The following actuarial assumptions were used to determine the actuarial present value of the projected benefit obligation and the net periodic pension costs for the Dutch pension plans at December 31:


	2023		2022
Discount rate	3.37	%	3.75	%
Expected return on plan assets	3.37	%	3.75	%
Wage inflation	—	%	2.00	%

The wage inflation assumption used to determine the projected benefit obligation was not applicable in 2023 following the curtailment of the plans in 2022. Additionally, the Company assumed expected indexation that conforms to Dutch pension law, as agreed upon in the Dutch pension plans.

Amounts recognized for the Dutch pension plans in the Consolidated Balance Sheets consisted of the following at December 31:


(In thousands)	2023		2022
Deferred taxes	$	1,162	$	1,200
Other long-term liabilities	4,503		4,800
Accumulated other comprehensive income	29,061		28,125

The components of net periodic pension cost for the Dutch pension plans included the following for the years ended December 31:


(In thousands)	2023		2022		2021
Net service cost	$	—	$	2,836	$	4,352
Interest cost	455		1,403		652
Expected return on plan assets	(292)		(910)		(424)
Amortization of actuarial gain	(696)		(262)		—
Amortization of curtailment	—		(2,030)		—
Administrative charges	—		374		280
Net periodic pension (income) cost	$	(533)	$	1,411	$	4,860

Plan assets at December 31, 2023 consisted of insurance contracts. Under Dutch pension law, the pension insurer is legally required to pay the funded benefits to the participants. The insurer cannot unilaterally return the obligation to the employer and the employer has no risks related to the assets. As the surrender value of the contract is less than the guarantee value provided by the insurer, the guarantee value is used as the fair value of the plan assets. This value is the net present value of the accrued benefits against the same assumptions as applied in the valuation of the liability. As such, the expected return is equal to the discount rate.

Expected benefit payments to eligible participants under the Dutch pension plans for the next ten years are as follows (in thousands):


2024	$	74
2025	90
2026	113
2027	147
2028	155
2029 - 2033	1,297